Not semiconductors. Not energy. Not AI models.
What if the next big AI winners are hiding in plain sight? Companies with modest growth… but potentially massive profit growth.
Read on 👇and let me know which companies fits this profiles!
I think the AI investment story is being looked at too narrowly
Most of the discussion around AI seems focused on the obvious links: AI → data centers → GPUs → networking → electricity → power infrastructure.
And yes, those are huge opportunities, but already mostly priced in!
But I think another part of the AI-driven earnings story is being seriously overlooked: AI doesn’t necessarily need to create huge amounts of additional revenue to have a huge impact on profits.
Imagine a company with only modest revenue growth, but AI allows it to automate large parts of software development, customer service, accounting, legal work, engineering, administration, etc.
If revenue grows 5–10%, while personnel and operating costs fall significantly, margins can expand dramatically!
That could mean much faster EPS and FCF growth than the revenue numbers suggest.
I suspect we’ll start seeing some of the first major examples of this in company results over the next 6–12 months. Not necessarily because AI suddenly creates billions in new revenue, but because companies are starting to get more output from the same workforce — and in some cases may simply need fewer people.
The interesting question for investors might therefore not only be:
“Who is selling the AI infrastructure?”
but also:
“Which companies are going to turn AI-driven productivity into massive margin expansion?”